Correlation Between Shelton Emerging and American Beacon
Can any of the company-specific risk be diversified away by investing in both Shelton Emerging and American Beacon at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shelton Emerging and American Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shelton Emerging Markets and American Beacon Glg, you can compare the effects of market volatilities on Shelton Emerging and American Beacon and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shelton Emerging with a short position of American Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shelton Emerging and American Beacon.
Diversification Opportunities for Shelton Emerging and American Beacon
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Shelton and American is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Shelton Emerging Markets and American Beacon Glg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American Beacon Glg and Shelton Emerging is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shelton Emerging Markets are associated (or correlated) with American Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American Beacon Glg has no effect on the direction of Shelton Emerging i.e., Shelton Emerging and American Beacon go up and down completely randomly.
Pair Corralation between Shelton Emerging and American Beacon
If you would invest 1,781 in Shelton Emerging Markets on February 11, 2024 and sell it today you would earn a total of 6.00 from holding Shelton Emerging Markets or generate 0.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Shelton Emerging Markets vs. American Beacon Glg
Performance |
Timeline |
Shelton Emerging Markets |
American Beacon Glg |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Shelton Emerging and American Beacon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shelton Emerging and American Beacon
The main advantage of trading using opposite Shelton Emerging and American Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shelton Emerging position performs unexpectedly, American Beacon can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in American Beacon will offset losses from the drop in American Beacon's long position.Shelton Emerging vs. Vanguard Emerging Markets | Shelton Emerging vs. American Funds New | Shelton Emerging vs. American Funds New | Shelton Emerging vs. New World Fund |
American Beacon vs. Federated Ultrashort Bond | American Beacon vs. Rbc Short Duration | American Beacon vs. 361 Domestic Longshort | American Beacon vs. Alpine Ultra Short |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Stocks Directory Find actively traded stocks across global markets |